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Increase land value

A relative owns some land on the outskirts of a village.

It has access as is next to a road and it's widely known that it will likely be on the proposed route of the village bypass, so if not sold voluntary would be compulsory purchased although nothing is confirmed or definatly in place.

Even though relative couldn't afford to develop the land, he's thinking if he can get outline planning permission to develop/build on his land it could massively increase its value should it be sold to or CP'd by the council to build the bypass on.

Any thoughts on this ?

Comments

  • ognum
    ognum Posts: 4,879 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It is certainly true that building land has a greater value than agricultural land.

    You say the land is on the outskirts of a village, how big is the piece of land and is there a building president nearby?

    Your first port of call would be to your local council to discuss the likelyhood of planning permission, however this maybe unlikely if the council are aware of future bypass plans.

    There should be a local development plan that you can check.

    Getting planning permission is seldom a quick process.
  • Mgman1965
    Mgman1965 Posts: 284 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    It's a field of around a couple of acres (I would say big enough for two decent detached houses or a dozen or so "developer" rabbit hutches) used to graze horses on at the moment.

    No houses nearby but not because not been allowed, just its all big crop fields apart from this small plot.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    It sounds like designated agricultural land. The village will have a development boundary in place. If it's not within this, he won't get planning permission, especially as the intended road scheme will be taken into consideration.

    In other words,the council won't be increasing the value of the land for your relative prior to purchasing it at some time in the future. That would be silly!
  • Mgman1965
    Mgman1965 Posts: 284 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Davesnave wrote: »
    It sounds like designated agricultural land. The village will have a development boundary in place. If it's not within this, he won't get planning permission, especially as the intended road scheme will be taken into consideration.

    In other words,the council won't be increasing the value of the land for your relative prior to purchasing it at some time in the future. That would be silly!

    It very possibly could be designated agricultural land, have to look into that.

    I take your point about the council not wanting to increase the value of the land by allowing development, but, on the other hand, why should a piece of privately owned lands value be kept from increasing and prevented from development because the council may want to CP it at some point in the future.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Mgman1965 wrote: »
    It very possibly could be designated agricultural land, have to look into that.

    I take your point about the council not wanting to increase the value of the land by allowing development, but, on the other hand, why should a piece of privately owned lands value be kept from increasing and prevented from development because the council may want to CP it at some point in the future.
    You're missing the main point, which is that the land's position inside or outside the development boundary of the village is paramount regarding development.

    Your relative would know if it was inside that, I'm sure. In time, that boundary might change, but there are no guarantees. All kinds of things must be considered, not just future road schemes.

    If a development boundary is deliberately moved to make room for more houses, the council will look at any land thus freed-up and consider changing it's status from agicultural to residential use when an outline building plan is submitted.

    Any land outside the village development boundary will usually be refused planning permission if this means changing its status from agricultural to residential. Most people accept that piecemeal development in the countryside is undesirable and that agriculture is still an important part of our economy.
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    Ask the council whether the land is on the face of it considered suitable for development. They will let you know whether it is going to be viable to go into the planning process.

    Check the title for covenants on the land also, eg that is must remain in agricultural use etc. Covenants are separate to Planning, but are enforceable by the beneficiaries.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mgman1965 wrote: »
    why should a piece of privately owned lands value be kept from increasing and prevented from development because the council may want to CP it at some point in the future.

    Because it's bad planning practice to allow development which is likely to obstruct a more significant proposal such as a new road.

    Anyway, surely the development value would be lowered by the fact that there is a new road proposed i.e. who wants to buy a house and then be kicked out of it in a few years, even if they do get compensation?
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